CIMIC Group’s Thiess Secured A $172 Mn Contract Extension From Bayan Resources

CIMIC Group’s Thiess Secured A $172 Mn Contract Extension From Bayan Resources

Contract miner, CIMIC Group Limited (ASX: CIM) has made an announcement on 7 March 2019 stating that its global mining services provider, Thiess, has secured a $172 Mn contract extension from Bayan Resources for expansion of its operations at Melak in East Kalimantan, Indonesia.

Following the release of this news, the share price of the company increased by 1.192% in the intraday trade as on 7 March 2019.

The contract has been extended for 12 more months and now it will be expired on 2023. Under the 12 months extension, Thiess will increase coal production and it will provide additional mining services which includes drill and blast, and coal loading to the barge facility.

While commenting on the contract extension, CIMIC Group’s CEO Michael Wright said that it’s great to see CIMIC’s team in Indonesia driving operational solutions and value for its clients to fulfill their production and expansion needs.

CIMIC Group’s Mining and Minerals Executive and Thiess Managing Director, Douglas Thompson said that he is pleased to continue its relationship with Bayan Resources and extending the operations at Melak where the company’s team has delivered exceptional technical solutions for almost ten years.

In 2008, Thiess was awarded a contract for developing and operating the Melak greenfield coal mine.

In the recent released Annual Report for FY 2018, the company informed that Thiess is undertaking its third successive contract with BHP at Mt Arthur Coal Australia.

The company recently released its full-year results for FY 2018. For FY 2018, CIMIC Group reported NPAT of $781 million, up 11% on the previous corresponding period. Further, the company reported revenue of $14.7 billion in FY 2018 which is 9% higher than pcp. In 2018, the company focused on enhancing the capability of its Operating Companies to provide integrated solutions, ensuring that the company delivers enduring value for its clients across the lifecycle of their assets, infrastructure and resources projects.

Recently, the company’s Board declared a final dividend of 86 cents per share, 100% franked, which will be paid on 4 July 2019.

Now, let’s have a glance at the company’s stock performance and the return it has posted over the past few months. The stock is trading at a price of $50.920, up by 1.192% during the day’s trade with a market capitalization of ~$16.32 billion as on 7 March 2019. The counter opened the day at $50.960 and reached the day’s high of $51.220 and touched a day’s low of $50.265 with a daily volume of ~ 259,332. The stock has provided a year till date return of 17.65% & also posted returns of 3.33%, 20.73% & 7.61% over the past six months, three & one-months period respectively. It had a 52-week high price of $51.670 and touched 52 weeks low of $39.575, with an average volume of ~ 283,336.


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